SMART TELECOM has confirmed that it is in negotiations with staff on cost-cutting measures which could see 30-40 people lose their jobs.

John Quinn, regulatory and development director with Smart, told The Irish Times that the company was in the middle of a month-long consultation period with staff and “various different options” were being considered.

He said it was likely that “30-40 positions will be made redundant”.

The consultation period comes to an end on February 24th at which time the exact number of job losses will become clear.

Smart Telecom currently employs 90 full-time staff but has a significant number of contract staff working through third parties.

It supplies a range of telecoms services to the residential, corporate and government markets.

“The corporate and government side is very strong for us, thanks to our very extensive network,” said Mr Quinn. “On the residential side, it is very difficult to compete and that has been well documented.”

Mr Quinn stressed that the cuts would have no impact on the current products and services it offers.

“We are not withdrawing any services to the residential market,” said Mr Quinn. “Instead we are looking at areas where we would have expanded into.”

Smart Telecom currently has about 14,000 residential customers for its telephone and internet services.

Smart is primarily backed by Cavan-based businessman Brendan Murtagh. He rescued the company in 2006 with a €65 million refinancing package, when the former publicly quoted company was struggling with €40 million in debt and was clocking up losses of €2.5 million a month.

Last month Anglo Irish Bank secured a court order for possession of the Co Kildare home of Smart Telecom’s former chief executive Oisín Fanning who had failed to make repayments on an €8.6 million loan.

Mr Fanning had borrowed the money to buy €5 million worth of shares in Smart and refinance an existing loan on his home.